Huobi to Convert Native Token to HTX
Huobi, the crypto exchange backed by Tron founder Justin Sun, has announced its plans to convert its native token to the HTX token. The conversion process will begin on January 22, 2024, and deposits for the new token will be available starting from January 20.
Launch of P2P Trading Services and Listing
On February 2, 2024, at 5:00 (UTC), Huobi will launch peer-to-peer (P2P) trading services for HTX. The token will also be listed for spot trading on the same date and time. Withdrawals for HTX will commence on February 3, 2024.
Incentives for HTX Users
Huobi has announced that HTX users will receive a 5% discount on futures trading fees and a 25% reduction on spot trading fees. These incentives aim to attract more holders and increase trading volume on the platform. Additionally, other benefits associated with the current HT token are expected to carry over to HTX.
Conversion Deadline and Token Allocations
Users have until January 20, 2025, to convert their HT holdings to HTX. Huobi states that HTX DAO will offer token allocations to HT holders who choose to make the conversion.
“HTX DAO is an open and transparent decentralized autonomous organization with the governance token of the HTX token, i.e., $HTX. As an appreciation for your years of support and contributions, HTX DAO is offering a certain token allocation for HT holders who voluntarily choose to exchange their $HT for $HTX.”
– HT press release
Market Reaction and Rebranding Concerns
Despite the announcement, the value of the HT token declined by 17% from $2.10 to $1.74. Although there has been a slight recovery, the token is still down 13% at present. This move follows Justin Sun’s recent rebranding initiative for Huobi, renaming it to HTX. However, some investors expressed apprehension due to the similarity between the new name and the collapsed FTX exchange, suggesting that the rebranding decision may not have been wise.
Hot Take: Huobi’s Conversion Plans and Market Response
Huobi’s decision to convert its native token to HTX has generated mixed reactions in the market. While it aims to provide additional benefits and incentives for users, such as reduced trading fees, the initial market response has been negative, with a significant drop in the value of the HT token. The success of this conversion will depend on Huobi’s ability to address investor concerns and regain confidence in its rebranded platform. It remains to be seen whether these moves will ultimately boost trading volume and attract more users to Huobi’s ecosystem.
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